Sovereign Wealth Fund

Air Niugini secures agreement with Air Vanuatu and Solomon Airlines, Cue Energy rejects takeover offer, and Steamships closes Highlands Highway operations. Your weekly digest of the latest business news.

The Papua New Guinea Treasurer Patrick Pruaitch has presented a record K16 billion national budget for 2015, but with an increased deficit of K2.272 billion.

Business Advantage PNG attended this week’s two-day Australia – Papua New Guinea Business Forum in Cairns. Here are some of our take-home observations from the annual event, which next year will take place in Lae, Morobe Province.

Study into limestone production in Simbu, PNG Power CEO reinstated and enquiry into coastal shipping costs. Your weekly digest of the latest business news.

Papua New Guinea’s proposed Sovereign Wealth Fund was intended to stabilise the kina and secure assets for the future. But, as Paul Barker from the Institute of National Affairs argues, the government’s borrowing plan for Oil Search shares may jeopardise the fund’s effectiveness.

The ANZ Bank last month predicted the kina will fall by up to 10% in value by the end of 2014, in anticipation of income from the LNG project. Paul Barker from the Institute of National Affairs, looks ahead several years to when that income begins to have ‘a substantial impact’.

With Papua New Guinea’s Sovereign Wealth Fund (SWF) due to receive its first revenues next year, the Governor of the country’s central bank has given his approval. Meanwhile, the International Monetary Fund has sounded a note of caution.

Many of the success stories in this publication have occurred against significant odds. Papua New Guinea’s producers face many challenges in developing their businesses, although things are looking up.